Entire Section

  • GEN 7.3 GEN 7.3 Applications for endorsements

    Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
    [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • Carrying on service with or for a Retail Client

      • GEN 7.3.1 GEN 7.3.1

        The following requirements must be met by an Authorised Firm for the grant of an endorsement to carry on a Financial Service with or for a Retail Client:

        (a) the applicant must have adequate systems and controls for carrying on Financial Services with or for a Retail Client;
        (b) the applicant must have adequate systems and controls (including policies and procedures) to ensure compliance with the requirements in COB relevant to Retail Clients;
        (c) the applicant must have adequate systems and controls to ensure that its Employees remain competent and capable to perform the functions which are assigned to them, in particular, functions that involve dealing with Retail Clients; and
        (d) the applicant must have adequate Complaint handling policies and procedures.
        Derived from Notice of Amendments to Legislation April 2011 [VER27/02-11]
        [Amended] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

        • GEN 7.3.1 Guidance

          Where an Authorised Firm applies for an endorsement to carry on a Financial Service with or for a Retail Client that involves dealing in a Restricted Speculative Investment, the DFSA would expect it to be able to demonstrate that:

          (a) either another Group member, or its head office if it is a Branch, is authorised and supervised by a Financial Services Regulator and has at least five years of relevant experience in dealing in Restricted Speculative Investments with Retail Clients; and
          (b) a sufficient number of the compliance staff, and client-facing staff involved in dealing in Restricted Speculative Investments, have at least three years of relevant experience.
          Derived from DFSA RMI297/2021 (Made 21st April 2021). [VER52/09-21]
          Derived from DFSA RMI305/2021 (Made 30th June 2021). [VER52/09-21]

    • Acting as a Trade Repository

      • GEN 7.3.2

        The requirements in App 5 must be met by an Authorised Firm for the grant of an endorsement to act as a Trade Repository.

        [Added] DFSA RM131/2014 (Made 21st August 2014). [VER34/06-14]

    • Endorsement to hold Client Assets or Insurance Monies

      • GEN 7.3.3

        An Authorised Firm applying for an endorsement to hold or control Client Assets must satisfy the DFSA that it has in place adequate systems and controls to meet the applicable requirements in COB sections 6.11 to 6.14.

        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]

      • GEN 7.3.4

        An Insurance Intermediary or Insurance Manager applying for an endorsement to hold Insurance Monies must satisfy the DFSA that it has in place adequate systems and controls to meet the applicable requirements in COB section 7.12.

        Derived from DFSA RM166/2016 (Made 10th February 2016). [VER36/04-16]

    • Endorsement relating to Long-Term Insurance

      • GEN 7.3.5

        An Insurance Intermediary applying for an endorsement to conduct activities relating to contracts of Long-Term Insurance must satisfy the DFSA that it has adequate skills and knowledge relating to underlying investments of Long-Term Insurance.

        Derived from DFSA RM184/2016 (Made 7th December 2016). [VER38/02-17]

    • Endorsement to use a Fund Platform

      • GEN 7.3.6

        A Person applying for an endorsement to use a Fund Platform must:
        (a) be authorised to Manage a Collective Investment Fund; and
        (b) satisfy the DFSA that the Incorporated Cell Company that is to be the Fund Platform:
        (i) has adequate systems and controls to establish, manage, operate or wind up the type or specialist classes of Funds proposed to be established as Incorporated Cells of that Incorporated Cell Company; and
        (ii) can carry out those activities in accordance with the requirements under the Collective Investment Law 2010 and CIR that apply to the relevant type or specialist classes of Funds referred to in (i).
        Derived from DFSA RMI247/2019 (Made 18th December 2019). [VER45/12-19]